Secured Transactions Act · 2022 Revised Edition · Part 6
31. Limit on value of priority of processed or commingled goods
Official textFrom Attorney General's Chambers, unchanged
If more than one security interest is perfected in the goods before they become part of a product or mass, the security interests rank equally in proportion to the value of the goods at the time they became part of the product or mass.
security interest
“security interest” means a property right in personal property that is created by agreement and secures payment or other performance of an obligation, regardless of whether the parties have denominated it as a security interest, and includes the right of a seller in an instalment sale or a sale with retained title, but it does not include a personal right against a guarantor or other person liable for the payment of the secured obligation;
Terms defined in s 3
goods
Defined · s 3“goods” means tangible personal property and include farm products, inventory, equipment, consumer goods, trees that have been severed, and petroleum or minerals that have been extracted, but does not include chattel paper, document of title, negotiable instrument, investment security or money;
security interest
Defined · s 3“security interest” means a property right in personal property that is created by agreement and secures payment or other performance of an obligation, regardless of whether the parties have denominated it as a security interest, and includes the right of a seller in an instalment sale or a sale with retained title, but it does not include a personal right against a guarantor or other person liable for the payment of the secured obligation;
value
Defined · s 3“value” means any consideration that is sufficient to support a simple contract, and includes an antecedent debt or liability and a binding commitment to provide future value.
Part
Special Priority Rules
Part
Registration
Part
Enforcement of Security Interests
Part